Gold imports to rise in Q1

Gold imports are likely to go up by 20 per cent to around 183.6 tonnes in the April-June quarter due to rise in demand triggered by weak prices, a trade body said.

“There is good demand and the footfall has increased multi-fold following weakness in gold price. The demand will be supported by the wedding season, which is extended till July unlike last year.... We expect up to 20 per cent rise in demand to around 183.6 tonnes in the April-June quarter,” Bombay Bullion Association President Mohit Kamboj told PTI.

Gold imports stood at 153 tonnes during April-June, 2012, according to World Gold Council data.

However, Mr. Kamboj said imports this month might be 25 per cent lower to around 53.25 tonnes than April, 2012, as “gold prices are yet to become steady.’’

“When the prices drop, traders hold back in anticipation of further decline, while they buy when prices rise with the fear of additional increase in rates,” he said.

In April, 2012, India had imported about 71 tonnes of gold.

But as the prices were strengthening slowly, and gold had become costlier by Rs.240 per 10 grams at Rs.25,920 from Wednesday’s closing price of Rs.25,680, imports of the precious metal are likely to pick up again, he said.